Living in Sernio, working in Grisons: advantages and disadvantages (cross-border guide)

Context

In a nutshell

• The New Frontier Agreement was signed on 23 December 2020 and will enter into force on 1 January 2024. - Frontier workers already present before 17 July 2023 will benefit from a transitional regime 2024-2033 with an exemption of CHF 7,500, while new frontier workers will have an exemption of CHF10,000.

The New Frontier Agreement represents an important change for border workers working in Switzerland and residing in Italy. The agreement provides for the creation of a transitional regime for border workers already present before 17 July 2023, which will be applied from 1 January 2024 to 31 December 2033. The transitional regime provides for a reduction of CHF 7,500 for existing frontier workers, while new frontier workers will have a deductible of CHF10,000.

For example, if a frontier worker resides in Sernio and works in Graubünden, he will be eligible for the CHF 7,500 deductible if he is already present in Switzerland before 17 July 2023. In this case, you will not have to pay income taxes up to a limit of CHF 7,500.

However, if a new frontier worker arrives in Sernio and starts working in Graubünden from 1 January 2024, he will have to pay income taxes up to a limit of CHF 10,000.

The New Frontier Agreement represents an important step forward in reducing bureaucracy and simplifying processes for frontier workers. The agreement provides for the creation of a single competent authority for the management of border workers, which will be

Operational details

Practical analysis

• Frontier workers already present before 17 July 2023 will benefit from a transitional regime 2024-2033 with an exemption of CHF 7,500. - The new frontier workers will have a deductible of CHF 10,000. - The New Frontier Agreement represents an important change for border workers working in Switzerland and residing in Italy.

The New Frontier Agreement represents an important step forward in reducing bureaucracy and simplifying processes for frontier workers. The agreement provides for the creation of a single competent authority for the management of border workers, which will be responsible for the management of their requests and exemptions.

For example, if a border worker resides in Sernio (TC) and works in Graubünden, they will be eligible for the transitional regime if they have submitted their application for a residence permit by 17 July 2023. In this case, you will enjoy the exemption of CHF 7,500 for the year 2024.

However, if a new frontier worker moves to Sernio (TC) to work in Graubünden after 17 July 2023, he/she will have to apply for a residence permit and pay the allowance of CHF 10,000.

The legislation governing the New Frontier Agreement is the Federal Regulation of 15 December 2022, which enters into force on 1 January 2024. This regulation also provides for the creation of a single competent authority for the management of border workers, which will be responsible for the management of their requests and exemptions.

For the

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Key points

• Check if you are a frontier worker already present before 17 July 2023 and if you are eligible for the CHF 7,500 exemption. - If you are a new frontier worker, check if you are eligible for the CHF 10,000 deductible. - Consult the list of competent border management bodies and request the necessary information for your situation.

For example, if you are a border worker residing in Sernio (GR) and working in Graubünden, you could benefit from the CHF 7,500 exemption if you have already worked in Switzerland before 17 July 2023. If you are a new frontier worker, you may have a deductible of CHF 10,000 if you have worked in Switzerland for at least 90 days during the previous year.

The New Frontier Agreement represents an important step forward in reducing bureaucracy and simplifying processes for frontier workers. The agreement provides for the creation of a single competent authority for the management of border workers, which will be responsible for the management of their requests and exemptions.

Here is a comparison between two practical scenarios:

Scenario 1: You are a border worker residing in Sernio (GR) and working in Graubünden. You have worked in Switzerland for at least 90 days during the previous year.

• You are entitled to the deductible of CHF 10,000. * You must apply by September 30, 2024 to qualify for the deductible.

Scenario 2: You are a border worker residing in Sernio (GR) and working in Graubünden. You have already worked in Switzerland before 17 July 2023.

*

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